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Royal North Shore Hospital set to shrink as government eyes off land

Harriet Alexander

Royal North Shore Hospital: The NSW government is looking to sell part of the campus. Photo: Rob Homer

The NSW government is looking to sell part of the Royal North Shore Hospital campus under a plan that has angered clinicians who intended for it to be used for health support services.

Previously earmarked for commercial medical activities, the government overrode the local area board that controls the hospital's budget to divest the southern part of the site in a decision revealed to clinicians on Monday.

It will tear down demountables that occupy the area and redevelop it to accommodate health ministry staff and affiliated agencies.

Medical staff council chairman Adam Rehak said the new intentions for the land were a clear departure from a masterplan that has been two years in the making and flew against the government's oft-stated objective to devolve responsibility for hospitals to their local boards.

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"We seem to be back in the dark old days of the government doing what they want and riding rough-shod over the stakeholders who should be actively involved in deciding the future of the campus," Dr Rehak said.

Royal North Shore was already one of the smallest teaching hospital campuses in NSW, he said.

"You could almost say we're no longer big enough to be called a teaching hospital."

Clinicians walked on Parliament House in 2011 in protest against the sale of a large proportion of the site, after which Health Minister Jillian Skinner placed a moratorium on the sale of land.

It is understood that the Northern Sydney Local District Board was taken by surprise by the decision.

Directors were aware that capital needed to be raised, after Treasury footed the $144 million bill from the construction of a new clinical services building.

But discussions between the board and clinicians had revolved around the southern area being used for commercial health services such as GP clinics, day surgery or carer accommodation.

Dr Rehak said none of the previous board minutes made mention of a move to relocate government departments onto the land.

"It seems to make a mockery of the whole presence of board governance ... if the decisions around management of existing assets are taken out of the local health district's hands."

Health Infrastructure, which delivers capital works of over $10 million on behalf of NSW Health, said in a statement that no decision had been made to sell the land and it would seek input from the market through its expressions of interest process.

About 8 per cent of the total site had been identified as a support zone and would provide accommodation, childcare services, commercial and retail activities. The Ministry of Health would also move to the site.

"A working group involving senior clinicians and representatives of the NSLHD has been meeting regularly to enable redevelopment of the southern campus to begin," the statement said.

A spokeswoman said that having a sitting tenant on the land would maximise market interest.

Mrs Skinner said the masterplan was signed off by the board after wide consultation with clinicians.

"The NSW government has decided to relocate the NSW Ministry of Health from North Sydney to the St Leonards site within the next five years," she said.